The days of Outrageous Dell Deals are coming to an end.

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Jasonx82

Supreme [H]ardness
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Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality Manufacturer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
 
Kinda sad, I always thought of Dell as a walmart of computers and thought their pricing was high until about a year ago when these deals made me think about how much value I was getting for what I was paying like the Dimension 9100 2405fpw I just got for 1200. Still it will always be a Dell but recently that wasn't such a bad thing in my head because of all the money I was saving.
 
Jasonx82 said:
Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality computer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
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Well, we'll just have to put that Grade A quality through the ringer then, won't we? ;)

Chris Morley
Senior Editor/Director Systems Evaluation Program
Hardocp.com
 
Does this new policy mean they're swapping Intel for AMD on the desktop? :-o
 
eloj said:
Does this new policy mean they're swapping Intel for AMD on the desktop? :-o
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Wouldn't that be nice.

Doesn't this mean they will lose the support of all the broke college kids and other people who need a 300 dollar web access and word processing machine?
 
Dell is getting tight. I work at a Dell authorized reseller and our main representative was just fired for processing some deals that were quite the usual to my boss. My boss has spent over 3 million dollars with Dell but yet they are doing this to our reps? Sucks.
 
I wonder how Dell intends to differentiate themselves as a manufacturer of high-quality electronics and computer equipment. As a Dell owner on several occasions, I've never described their products as high-quality, just merely adequate for the budget and task.
 
I don't even think the majority of people who buy Dells even knows or cares what kind of parts are in them - they just buy them because they're affordable. Do your grandmothers care if the Dell uses an Asus or Intel or whatever motherboard? Probably not.

This is a shame though, I was holding out for a super cheap 2005FPW since I missed the deal last time. :mad:
 
I have built over 80 computers in the last four years. I think the quality and service of Dell has gone down. I have a Dell 5150 laptop here that someone gave me. The motherboard is $350 to replace. The model has had tons of motherboard problems but Dell does not stand behind it. I think they are tired of dealing with issues like that. To me the budget Dell systems are cheap and the nicer ones in the $800+ price range are overpriced when compared to building a similar system.
 
skudmunky said:
Wouldn't that be nice.

Doesn't this mean they will lose the support of all the broke college kids and other people who need a 300 dollar web access and word processing machine?
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They're probably trying to get out of the low end business because of the hassle with customer support and troubleshooting. Makes sense to me, but hopefully someone steps in to fill that niche.
 
Jasonx82 said:
Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality Manufacturer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
Click to expand...

I think you might have misunderstood what the representative was saying about the 'restructuring' of the Dell brand. Either that, or the representative misunderstood the presentation that he probably watched about it...which is probably more likely.

I am a previous employee of Dell. I worked with them for about three years in their DHS Consumer Sales Department. I still have a lot of close friends that still work for them and actually just got wind of this change earlier in the week.

From what I understand, this is what's going down. Dell is no longer going to try to compete with the low-end systems of HP/Compaq, Gateway/E-Machines, and the like. All of those $299 Dimension 2400 systems? Gone. The only reason those machines even EXISTED was to advertise that lower price so people would call ... and speak to a sales rep and be talked into a higher-end machine (which isn't bait/switch ... they would still technically sell you the $299 ... but that's another topic).

But here is what was happening ... the $299 systems were driving in bad calls. People were calling who weren't serious about buying and didn't have a way to pay for the system (because at that price, it made the computer an appliance and people were more comfortable to impulse buy).

In the beginning, this setup was fine because it drove in a lot of calls and turned into a lot of revenue. But as they used it more and more, that low end system became the "staple" and it became harder and harder to upsell someone into a system that wasn't a glorified typewriter. Only advertising the low-end machine, coupled with the quality of the parts in it as well as the outsourced support for consumer customers (yet again, a different topic entirely) really hurt the financial gains that Dell was expecting, so they cut it.

Now, they're going to be pushing more of the mid to high-range systems and trying to regain their "quality" standard that they were known for the majority of average joe buyers. It doesn't mean they're not going to be having any more great deals on computers or those weekly promotions or give you a pretty good value for the price. This means that you won't see those $299 systems all over television and won't see that Outrageous Deal section on the website anymore (that also lost Dell a lot of money because all of those systems were basically negative profit).

Now, from my opinion, this will work in the short term. But when you look at the TRUE issues that are causing Dell to lose it's quality, it's not the machines. The machine has always been probably the strongest point of the Dell equation (this is arguable and just my opinion). If it were JUST the price, then why isn't E-Machines the top computer manufacturer right now? They undercut the price of Dell for YEARS before they caught on. Just food for thought ....
 
This is a very interesting move from Dell's sid, but should benefit their bottom line, if they are able to change their public image to reflect the strategy change.
 
Someone else got it for this price and he was nice enough to give me his order number. The rep told him he would give some of his "friends" the same price. I promised not to give the information to anyone else so I can not give any more details. I just thought you might like to know that it is still possible.
 
Crimson Tear said:
Oh thank God. So there is still a chance of getting a 2405FPW on the cheap.
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I got one last week for 839.25 shipped. It took me 4 or so calls to get it down that low.
 
When I bought my Dell 3 1/2 years ago (has it seriously been that long?) I was kind of mad cause I didn't build it myself, but to tell you the truth, I can't be happier with it. It really has seen alot and it's pulled through, tough little box here...
 
Thank GOD, I'm tired of fixing those Piece of crap Dimension 2400s owned by people that barely know how to use the damn things and they still DEMAND to know why their computer failed. A detailed explanation of why the thing died is useless on them. Might as well be talking to a deaf person.

The new BTX Dimensions and Opti systems are super nice and very high quality, they're just a BITCH to work on.
 
Man I hope they dont get rid of the great deals... I want my dual proc dual core server w/$300 raid card for under 1k...
 
Jasonx82 said:
Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality Manufacturer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
Click to expand...

That sounds like something a salesman would say if he wants you to pay full price, before the next wave of deals comes out.

Aren't Dell deals cyclical with their corporate earings? That is, haven't they used them to boost sales, padding their earings reports just before they come out?
 
Mr_Evil said:
Thank GOD, I'm tired of fixing those Piece of crap Dimension 2400s owned by people that barely know how to use the damn things and they still DEMAND to know why their computer failed. A detailed explanation of why the thing died is useless on them. Might as well be talking to a deaf person.

The new BTX Dimensions and Opti systems are super nice and very high quality, they're just a BITCH to work on.
Click to expand...

Hey, Hey, Hey, now woah there I'm deaf and I'm not computer illeterale, I might not have the best grasp of english, but I probbly know more about computers than you do.

Chilly
 
lol, funny thread...

The best deal imo was last month since I got some great deals though dell and want to save them for another post :) Too bad I won't get it until say sunday or longer depending on if my brother wants to go pick it up(long story)...

I'm sure that we won't see those 35%-40% off like we use to for some time unless...
 
Jasonx82 said:
Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality Manufacturer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
Click to expand...
Guess I'll go see somewhere else for my a laptop then. I don't think I would trust Dell for "Grade A" and pay higher than other shops for their quality.
 
I for one think its a good thing. Another Company will step up to the plate to fill the $299 price point. I feel that Dell has hit rock bottom when it comes to customer service. The sales reps latley don't even want to sell you a product it appeas, as I have been hung up on when they couldn't up-sale me on another item more than once. A new contender for the low end should have some passion for gaining market share. That is a good thing for the consumer.

Dell seems to have gotten too large to care abour single sales any longer. New Blood on the bottom floor is just what the OEM builder market needs.
 
soon as the stock gets high and new models are around the corner, you'll get the deals to move out the old and move in the new.
 
EmptyFlame said:
I think you might have misunderstood what the representative was saying about the 'restructuring' of the Dell brand. Either that, or the representative misunderstood the presentation that he probably watched about it...which is probably more likely.

I am a previous employee of Dell. I worked with them for about three years in their DHS Consumer Sales Department. I still have a lot of close friends that still work for them and actually just got wind of this change earlier in the week.

From what I understand, this is what's going down. Dell is no longer going to try to compete with the low-end systems of HP/Compaq, Gateway/E-Machines, and the like. All of those $299 Dimension 2400 systems? Gone. The only reason those machines even EXISTED was to advertise that lower price so people would call ... and speak to a sales rep and be talked into a higher-end machine (which isn't bait/switch ... they would still technically sell you the $299 ... but that's another topic).

But here is what was happening ... the $299 systems were driving in bad calls. People were calling who weren't serious about buying and didn't have a way to pay for the system (because at that price, it made the computer an appliance and people were more comfortable to impulse buy).

In the beginning, this setup was fine because it drove in a lot of calls and turned into a lot of revenue. But as they used it more and more, that low end system became the "staple" and it became harder and harder to upsell someone into a system that wasn't a glorified typewriter. Only advertising the low-end machine, coupled with the quality of the parts in it as well as the outsourced support for consumer customers (yet again, a different topic entirely) really hurt the financial gains that Dell was expecting, so they cut it.

Now, they're going to be pushing more of the mid to high-range systems and trying to regain their "quality" standard that they were known for the majority of average joe buyers. It doesn't mean they're not going to be having any more great deals on computers or those weekly promotions or give you a pretty good value for the price. This means that you won't see those $299 systems all over television and won't see that Outrageous Deal section on the website anymore (that also lost Dell a lot of money because all of those systems were basically negative profit).

Now, from my opinion, this will work in the short term. But when you look at the TRUE issues that are causing Dell to lose it's quality, it's not the machines. The machine has always been probably the strongest point of the Dell equation (this is arguable and just my opinion). If it were JUST the price, then why isn't E-Machines the top computer manufacturer right now? They undercut the price of Dell for YEARS before they caught on. Just food for thought ....
Click to expand...
Now THAT is something that makes a little more sense.... I wouldn't think a company like Dell is just going to up and change their direction like that...

BTW, 2405FPW goes for cheap on ebay does it not? I saw one on there go for like 800 or something yesterday
 
If E-Machines had the massive advertising campaign as Dell did, they would do a lot better.

I have had to work on more Dell computers than any other OEM. They have a long way to go in my book before I upgrade their status from "cheap pieces of crap".

The only thing that they sell that's worth anyhting are their monitors.
 
Dell is shooting themselves in the foot here. They just lost the aggragate buy contract here in NYS, so that means if any state organization wants to buy computers they have to buy Gateway machines now. So I hope they know what they're doing here...
 
Jasonx82 said:
Just got off the Phone with Dell, apparently no more outrageous deals like in the past. The Sales Rep Said "Dell is changing there business strategy instead of being known as the walmart of computers. They wanna be known as Grade A Quality Manufacturer." which will cut off those awesome deals they use to have before. Along with the value line getting premium parts + a higher price tag.
Click to expand...

Hah I remember buying my DELL laptop (Inspiron 5150) for under $800 about a year ago... one of the best purchases I made. I don't think their computers are cheap. But they do cut corners on their low end machines (Dimension 2400).
 
Mr_Evil said:
Mr Evil's posts may contain offensive material and should not be read by anyone.
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Not a problem. I can make that happen, you should have asked sooner.
 
Nice own, Kyle.

Anyway, I think that Dell is probably making the right decision. I really don't care as long as they still have some good deals on their higher end equipment. After all, isn't that all that the people in this forum will be interested in?
 
mikeblas said:
...Aren't Dell deals cyclical with their corporate earings? That is, haven't they used them to boost sales, padding their earings reports just before they come out?
Click to expand...
That's correct. The game generally goes like this:

There are two divisions of Dell: DHS (consumer) and BSD (business). Dell gets virtually ALL of their profit margins from BSD due to their PowerEdge line of servers and the aggregate contracts that they land with corportations, state and federal government, and educational establishments.

Dell gets most of their revenue numbers from DHS. It's the most agile division when it comes to marketing, so if it's getting towards the end of the quarter and the numbers are looking like they'll are not going to hit projection, they'll throw out some insane promotions in DHS and advertise the hell out of it. Sure, with the promotions they aren't making as much money per box because of the discounts, but they will sell so many boxes that the revenues will get a kick in the pants.

Moral of the story is that generally the best promotions will fall at the end of Dell's fiscal end of quarters (late January, April, July, and October).

Craz said:
Dell is shooting themselves in the foot here. They just lost the aggragate buy contract here in NYS, so that means if any state organization wants to buy computers they have to buy Gateway machines now. So I hope they know what they're doing here...
Click to expand...
Not really the same realm because all of these changes are just taking place in the consumer division, but I agree about the loss of the NYS contract. That lost them a serious amount of money.

tazzmissionx said:
If E-Machines had the massive advertising campaign as Dell did, they would do a lot better.

I have had to work on more Dell computers than any other OEM. They have a long way to go in my book before I upgrade their status from "cheap pieces of crap".

The only thing that they sell that's worth anyhting are their monitors.
Click to expand...
Reguardless about your opinion of the quality of the machine, it's my opinion that you work on more Dell computers than anyone else because they have more marketshare than anyone else. Just a simple ratio.

I'm still up in the air as to if this "new identity" is going to be a good move or not for the company and the consumer. I guess time will tell...
 
EmptyFlame said:
Reguardless about your opinion of the quality of the machine, it's my opinion that you work on more Dell computers than anyone else because they have more marketshare than anyone else. Just a simple ratio.
Click to expand...
I absolutely agree with that...
 
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